Hayden v. Commissioner
United States Tax Court
Ps are the sole partners in L. During 1994, L expended $ 26,650 on sec. 179 property and elected to expense $ 17,500 of that amount. Without regard to this deduction, L had no taxable income for the 1994 taxable income. The deduction under sec. 179 flowed through to Ps' 1994 return.
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Ps are the sole partners in L. During 1994, L expended $ 26,650 on sec. 179 property and elected to expense $ 17,500 of that amount. Without regard to this deduction, L had no taxable income for the 1994 taxable income. The deduction under sec. 179 flowed through to Ps' 1994 return. Sec. 1.179-2(c)(2), Income Tax Regs., provides that a "partnership may not allocate to its partners as a sec. 179 expense deduction for any taxable year more than the partnership's taxable income limitation for that taxable year". Ps contend that the regulation is invalid. HELD: Sec. 1.179-2(c)(2), Income Tax…
1Opinion of the Court
OPINION
DAWSON, Judge:
This case was assigned to Special Trial Judge Carleton D. Powell pursuant to section 7443A(b)(3) and Rules 180, 181, and 182.1 The Court agrees with and adopts the opinion of the Special Trial Judge that is set forth below.
OPINION OF THE SPECIAL TRIAL JUDGE
Powell, Special Trial Judge: Respondent determined a deficiency in petitioners’ 1994 Federal income tax and an accuracy-related penalty under section 6662(a) in the respective amounts of $3,784 and $292.60.
The issues are whether petitioners are entitled to a deduction in the amount of $17,500 under section 179 and…
2Cases cited19 opinions
- Freytag v. CommissionerSupreme Court of the United States · 1991
- Commissioner v. South Texas Lumber Co.Supreme Court of the United States · 1948
- United States v. CorrellSupreme Court of the United States · 1967
- Carlos and Jacqueline Marcello v. Commissioner of Internal Revenue, Joseph, Jr. And Anastasia Marcello v. Commissioner of Internal RevenueCourt of Appeals for the Fifth Circuit · 1967
- United States v. Vogel Fertilizer Co.Supreme Court of the United States · 1982
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3Cited by3 opinions
- Dennis L. Hayden and Sharon E. Hayden v. Commisioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 2000
- Dennis L. and Sharon E. Hayden v. CommissionerUnited States Tax Court · 1999
- Hayden v. CommissionerUnited States Tax Court · 1999